The artificial intelligence (AI) craze and rebound in tech stocks have resulted in the SPDR S&P 500 ETF Trust’s (NYSEARCA:SPY) year-to-date rally of about 13%. Interestingly, the SPY ETF stock’s technical indicators and the analysts’ price target suggest further upside potential from the current level.
The SPDR S&P 500 ETF is designed to track the S&P 500 Index (SPX) and provides investors with a smart investment option. The ETF (Exchange Traded Funds) is highly diversified as it represents a basket of over 500 companies from across eight market sectors, including technology, health care, and more.
One of the major factors worth considering is the SPY ETF’s considerably low fees. The ETF has an expense ratio (cost of managing the ETF) of 0.09%, which makes it an attractive investment.
Remarkably, SPY has delivered an average annualized return of 12.1% in the past decade, ending in March 2023. Moreover, SPY ETF stock pays a 1.51% annual dividend yield, which enhances investors’ returns over the long run.
Is SPY a Buy?
It is worth mentioning that as per 6,186 analysts providing ratings on SPY’s 505 holdings, the ETF is a Moderate Buy, and the average price target of $478.05 implies a 11.7% upside.
Apart from the experts, TipRanks’ easy-to-read technical summary signals indicate that SPY ETF stock is a Buy at current levels.
Additionally, the weighted average Smart Score of the SPDR S&P 500 ETF is eight, implying it is more likely to beat the broader market averages. It is worth highlighting that more than 50% of the holdings boast an outperform Smart Score.
While most of the ETF’s holdings witnessed strong returns over the past year, there remain a few outperformers, having gained over 60%. Importantly, analysts see further upside potential in these stocks. Here are the 10 best-performing stocks in the SPY ETF:
- First Solar (FSLR)
- Nvidia Corporation (NVDA)
- Netflix, Inc. (NFLX)
- Fair Isaac Corporation (FICO)
- Axon Enterprise, Inc. (AXON)
- General Electric (GE)
- Dexcom (DXCM)
- Lamb Weston Holdings (LW)
- Las Vegas Sands (LVS)
- Cardinal Health (CAH)